Daily Pivots: (S1) 0.9884; (P) 0.9911; (R1) 0.9952; More…..
USD/CHF spikes higher in early US session but upside momentum is unconvincing. Intraday bias remains neutral as the consolidation from 0.9860 temporary low is extending. Overall, outlook remains bearish with 1.0043 minor resistance on hold and deeper fall is expected. Decline from 1.0342 is seen as the third leg of the pattern from 1.0327. Below 0.9860 will target 61.8% retracement of 0.9443 to 1.0342 at 0.9786 and below. On the upside, break of 1.0043 will indicate short term bottoming and turn bias back to the upside.
In the bigger picture, rejection from 1.0327 resistance suggests that consolidation pattern from there is still in progress. Fall from 1.0342 is seen as the third leg and retest of 0.9443/9548 support zone could be seen. But we’d expect strong support from there to contain downside. At this point, we’re still expecting the larger rally to resume later to 38.2% retracement of 1.8305 to 0.7065 at 1.1359.